Seller yet to fulfil bank conditions, closing date a week away

cookie_growSeptember 14, 2010

Hello,

I am in the process of obtaining a mortgage and the bank had several conditions. One of them was the sellers had to fix a broken vent in the attic. Once they fix that the bank appraiser was to evaluate and then finalize things.

We are a week away from closing and the sellers have yet to inform everyone whether the repairs have been done.

Both attorneys and agents (seller/buyer) have been trying to contact the sellers for the past several days. They do not return voicemails and provide no update. So we do not know whether the repairs have been made and so the bank is also still waiting to give the final approval seal.

If the closing date passes, we will lose our locked interest rate. My question is, if we decide to back out since the sellers did not fulfill the contract obligations (the repairs were also required in the contract) do we still have to pay bank fees associated with closing? What options do we have. I know that if the date extends beyond closing then we have to pay a fees to keep the interest rate.

Any suggestions? Has anyone been through a similar situation? We are really stressed out, since we have started packing, given our move apt move out notice.

"My question is, if we decide to back out since the sellers did not fulfill the contract obligations (the repairs were also required in the contract) do we still have to pay bank fees associated with closing?"

That is between you and your lender.

Most likely you are on the hook for the fees, especially if the bank paid them to third parties(like appraisals).

A requirement levied by a lender to make a repair may not actually be part of the contract.
Was it added in with both parties agreement?

You contract almost certainly has an "out" if they fail to complete the agreed upon repairs. Beyond that, you'll need to have a lawyer take a look at the contract. That may or may not cost more than the charges in dispute.

"I know that if the date extends beyond closing then we have to pay a fees to keep the interest rate. "

Interest rates have been going down and down. Unless you got an amazing rate locked in, you should have no trouble matching it.